Job prospects for IT contractors appear to be improving, according to a leading recruitment consultancy.

In its interim report, Harvey Nash has declared that demand for IT contractors in the six months to July 31st has been "robust".

It is strength in this area that has driven international profits for the company, resulting in a 40 per cent increase in gross return when compared to the same period of 2009.

"The group continues to trade well in the current environment but we remain appropriately cautious given the economic climate in which we operate," the firm states.

Harvey Nash is right to be cautious, as the latest edition of the monthly Report on Jobs, published by the Recruitment & Employment Confederation, says that recruitment growth is slowing.

Appointments for temporary staff are still rising, but the rate is now at its lowest value in four months with the effect of public sector cuts yet to be truly felt, the report finds.